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I don't like buying a stock and hoping that it doesn't go up. I'd prefer to just hope it doesn't go up too fast in the short term, but if it does, I'm getting paid.


Thanks for your ideas. Although I may not have been clear, I also view the oil sector as an ideal trading sector at this time. My trading strategy in this account uses covered calls to play on the volatility with short term covered writes (e.g., 7-14 days). The remainer of the time, I plan to be either long the stock or holding cash like I am right now.

I let my shares get called Friday rather than rolling. My anticipation is that Natural Gas prices fall (bearish for ESV) next week, and if that is the case ESV should also fall. Last week saw Natural Gas inventories fall (bullish for ESV) and this week, with the warm weather across the USA and predicted warmer than average Christmas, I expect ESV to pull back towards 50 and as it pulls back I will buy back in and write some Jan 07 55 calls.

I think this stratgey is good for the drillers and for big oil right now. You just need to know what your stock is most sensitive to (e.g., refining margins, Gas prices, crude prices etc.). I will share my results as I continue this strategy.

I have thought about call spreads on ESV and other drillers, but the premiums don't seem to justify the risk. Therefore, I have stuck to call and put writing in this sector.

I like your "pay me" name for your IRA account. I let my IRA sit for years without taking the most advantage of the tax free nature of the ROTH.

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